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U S Economy Grows 2.8 %in Q Y
The U S economy grew at its fastest pace in one – and -a -half years in
the fourth quarter , rebuilding of stocks by businesses and week spending on
capital goods hinted for the shole of
2012,the economy grew 1.7 % after expanding 3 % the prior year .
$
5 – Billion Loss : Goods Made in India, Faked in China
Chinese manufacturers are increasingly “ faking “ popular Indian products
of consumer goods giants such as Dabur and ITC, undermining the legitimacy of
brands and causing losses worth as much as $ 5 billion annually, officials
said.
Govt readies Rs. 50k cr infra fund plan
LIC, IIFCL, IDBI Bank, ADB & HSBC likely Parteners for New Finance
Firm. The government has finalized the outlines of a $10 billion crore ( over Rs. 50, 000 crore ) infracture debt
fund ( IDF ) with 50% participation from a foreign bank and a multilateral
agency, while the rest of the corpus will be contributed by state owned
financial institutions on 2 January 2012.Government officials and bankers said
India Infracture Finance Company ( IIFC ), Life Insurance Corporation and IDBI
Bank along with Asian Development Bank and HSBC are joining hands to set up a
non banking finance company ( NBFC ).
RBI governor hints at soft monetary policy
Concerned over the declining growth Reserve Bank Governor D Subba Rao has
indicated on 2 January 2012 that the central bank could reverse the tight
monetary stance adopted by it since March 2010 to control inflation. The central bank is scheduled to announce the
monetary policy review on Jan 24. RBI
has hiked key interest rate 13 times since March 2010 in its bid to check
rising inflation, but it took a pause in its December monetary policy .
ONGC to invest $2.9 bn in Krishna Godavari gas find
State – owned Oil and Natural Gas Corporation ( ONGC ) plans to invest
$2.894 billion ( about Rs. 15, 340 crore ) in developing its ultra deepsea UD –
1 gas discovery in the KGi basin by 2016 – 17.
Andhra Bank hikes NRE deposit rates
The state – run Andhra Bank has hiked its interest rates on NRE term
deposits to 9.40% per annum for one year, 9.25% pa from one to two years and 9%
pa for 2 to 3 years with effect from December 30, 201.
SBI achieves 100% Financial Inclusion in AP
State Bank of India has achieved 100% coverage of its alloted unbanked
villages in Andhra Pradesh under the Financial Inclusion Programme ( FIP ) of
the Reserve Bank of India.
PFC’s Rs. 5,000 – Cr Tax – Free Bonds
Power Finance Corporation ( PFC ) on 2 Jan. 2012 has come out with a Rs.
5,000 crore tax – free bond issue. PFC
is a Navratna Government of India undertaking with the government holding
73.72% stake in it. Government approves RIL’s $1.529 B Investment Plan for
Satellite Fields in KG-D6 Block.
The Union government approved Reliance Industries’ (RIL) $1.529 billion
investment plan for developing four satellite fields in the declining KG-D6
block on 3 January 2012. RIL’s investment plan will boost falling output in the
Krishna-Godavari Basin KG-D6 block . Growth in Direct Tax collection down by
8.3%”.
Annual growth in net direct tax collection slowed to 8.3% during the
first nine months of the fiscal year amounting to Rs. 3,23,955 crore, raising
concerns about the centre’s ability to meet its revenue targets.
ONGC declares 125% Interim Dividend
State – run Oil Natural Gas Corp ( ONGC ) declared a 125% interim
dividend. The Board has approved an
interim dividend of Rs.6.25 per equity share
( of Rs. 5 each ) for 2011 – 12 on 4 Jan. 2012.
SEBI allows UTIMF to launch new schemes
Reversing its earlier stand,
market regulator SEBI on 4 Jan. 2012 has allowed UTI Mutual Fund ( UTIMF ) to
launch new funds again even though the fund house continues to function without
its top executive officer nearly a year now.
SBI Loan to Kingfisher Airlines turns NPA
State Bank of India, the country’s largest lender says its exposure to
ailing private carrier Kingfisher Airlines has turned a bad loan or a
non-performing asset ( NPA ) on 5 Jan. 2012.
SIDBI inks pact with IOB
Small Industries Development Bank of India ( SIDBI ) has entered into a
memorandum of understanding with Indian Overseas Bank ( IOB ) to extend
assistance to micro, small and medium enterprises ( MSME ) to the customers of
IOB on 6 January 2012.
State FMs agree in principle on GST ( Goods and Services Tax ) list
The empowered committee of state finance ministers on GST on Jan. 9, 2012
agreed in principle on the concept of “negative list” and suggested the Centre
could prepare such a list which would help widen tax base. The panel has agreed
in principle to the concept of negative list and the Union Government should
prepare it and can also implement it from April, 2012. The Committee suggested
that all those items mentioned in the Constitution’s Schedule – II should be
included in the negative list so that Union Government can not impose tax on
them.
Air India told to pay service tax dues
The Central Board of Excise and Customs ( CBEC ) on 10 Jan. 2012 has
warned the national carrier Air India to pay up a “reasonable” part of its
service tax dues as early as possible or face having its accounts frozen.
Govt. notifies 100% FDI in single-brand retail Retains rider of 30%
sourcing from Indian small industries
The Government, which has been facing flak for ‘policy paralysis,’ on 10
Jan. 2012 notified 100 per cent Foreign Direct Investment in single-brand
retail trading, moving a step forward in opening up of the retail sector. The current FDI limit is 51 per cent. Investments will be through the Government
approval route.
IRDA plans to take up complaints on its own
Customers may except better services from their insurers soon. The Insurance Regulatory Development
Authority is planning to take insurance complaints on its own to ensure fair
play by the insurers.
Govt investing $20 b in creating information highway, says Pitroda
The Government is investing $20 billion in projects related to creating
information highway, according to Mr Sam Pitroda, Advisor to the Prime Minister
on Public Infrastructure, Information and Innovations.
SEBI asks bankers to disclose due diligence records
Stock market regulator SEBI ( Securities and Exchange Board of India ) on
10 Jan. 2012 has asked merchant bankers to disclose their track record of due
diligence done during the last three financial years from the date of listing
for each public issue managed by them.
Rs. 1,935 crore worth FDI cleared
The Government on 10 Jan. 2012 has approved 20 proposols of Foreign
Direct Investment worth Rs. 1,935.24 crore according to an official statement.
One among them include Rs. 1,150 crore by Sterlite Grid, to act as an
investment company.
RBI says no to CRR cut
The Reserve Bank of India has ruled out the possibility of a cut in the
cash reserve ratio or CRR, in its monetary policy review on January 24,
according to bankers who took part in the customary pre-policy meeting held by
the central bank on Jan.10, 2012.
Rice procurement up 17.3%
The Government has so far procured 18.11 million tonnes rice from farmers
across the country in the current marketing year that started October , the
food ministry said on 10 Jan. 2012.
Malaysia palm oil exports fall
Malaysia’s palm oil exports fell 19 per cent in the first 10 days of
January compared with the previous month.
Indirect tax collections up 16.1 per cent
Indirect tax collections went up by 16.1 per cent to Rs. 2.86 lakh crore
in April-December this fiscal as compared to Rs. 2.46 lakh crore garnered
during the same period of 2010-11.
Moody’s upgrades India’s Short – Term Foreign Currency Bank Deposits
Rating
It will help Indian banks, other entities raise overseas deposits at
finer rates.Global rating agency Moody’s on Jan. 10, 2012 has upgraded the
country’s rating of short term foreign currency bank deposits from
‘speculative’ to ‘investment’ grade.
Since December 20 last year, this is the fourth upgrade by Moody’s
Investor Service, which is expected to help Indian banks and other entities in
raising overseas deposits at finer rates.
SBI cuts processing fee by half for bigger share of Home Loan Mkt
The State Bank of India on 11 January 2012 cut processing fees on home
loans by half, a move aimed at acquiring a larger business in the home loan
market and giving competition to private banks and housing finance companies.
SBI opens exclusive branch for women customers
The branch, Vasundhara Jubilee Senortia Banking centre is opened by SBI
in Hyderabad on Jan. 11, 2012. It is
only the second of its kind in the country.
It is aimed at tech-savvy, educated women customers including
entreprenuers. ”"with play room for
kid and other facilities women customers can handle their banking transactions
in a safe and family atmosphere”".
Andhra Bank lauches ‘ Abhaya Wealth Pack ‘
Andhra Bank on 12 January 2012 launched ‘ Abhaya First Wealth Pack ‘ for
the common man. The bank termed it as
‘one wealth management for all financial needs’. It will have a savings bank account, a
recurring group deposit account, a group term insurance and a unit linked
insurance plan.
India to be Reckitt Benckiser’s New Regional Head Quarters
Benckiser, one of the world’s largest consumer goods companies , has
upgraded India to its regional head quarters for Sooutheast Asia, covering 12
nations representing a market of 1.8 billion people.
S&P may strip France of AAA rating for first time
Standard & Poor’s is stripping France of its AAA rating for the first
time according to Agence France-Press report.
SEBI wants Fund Houses to Launch Pension Products
Asset Management Companies ( AMCs ) need to launch pension products that
will channel retirement savings into stock market, Securities and Exchange
Board of India (SEBI) Chairman UK Sinha said on 13 January 2012.
Indian Exports up 6.7% in December, may touch $300-b target
India’s exports rose for the first time in five months, encouraging the government
to reaffirm that it would achieve its $300-billion target for the year. Exports in December grew 6.7% to $25 billion
over the previous month according to the data released on 16 January 2012.
At 7.47%, December Inflation takes major load off Govt
Inflation rose at its slowest pace in two years in December 2011. Headline Inflation as measured by the
Wholesale Price Index (WPI), dropped to 7.47% in December on lower food prices,
as compared with 9.11% in November, government data released on 16 January
2012.
S&P downgrades the Brussels’ bailout fund EFSF
The Standard and Poor’s, the US credit ratings agency on January 16
downgraded the Brussel’s main bailout fund, European Financial Stability
Facility (EFSF) by one notch to AA+ but said it would restore the top AAA
ranking if the fund obtains additional guarantees.The decision was the result
of downgrades to France’s and Austria’s ratings from AAA since they served as
top-level guarantors of the European Financial Stability Facility, S&P said
in a statement.
Govt. set to allow FDI in domestic airlines
In a major relief to financially distressed Indian airlines, the
government on 17 Jan. 2012 said foreign airlines would soon be allowed to
acquire up to 49% stake in them.
Chinese Banks lend $1.18 bn to Reliance Communications
Chinese state banks lend debt-laden Reliance Communications (Rcom) $1.18
billion to repay foreign currency convertible bonds worth Rs 6,125 crore ($1.18
billion) on 17 Jan. 2012.
India ranked behind Pakistan, Bangladesh
India has been ranked as 132 behind Pakistan and Bangladesh in 2012 in
the World Bank’s latest ‘Ease of Doing Business’ rankings. India has moved up seven points to 132 this
year, from 139 last year.
Rupee undervalued 61% : Big Mac Index
The Indian rupee is the most undervalued currency, trading at around 61%
below its actual price against the dollar according to The Economist’s Latest
Big Max Index. The Index measures the
effective purchasing power of different currencies by looking at how much Mc
Donald’s popular burger costs in various countries.
Iran explores buying more goods from India
Iran is considering stepping up its purchases from India to obtain a more
balanced trade and reduce the payments problem faced by the two countries in
setting payments for crude import by India in the wake of fresh sanctions from
the US.
Centre plans to boost up textiles sector
The government is planning to give incentives to the textiles sector with
retrospective effect as it seeks to revive India’s second largest manufacturing
sector burdened with sickness, debt and declining demand.
World Bank cuts Global GDP forecasts
The World Bank on 18 Jan. 2012 warned the developing countries of the
upcoming recession danger. It cut its
forecast for growth in developing economies to 5.4% for 2012 from its previous
forecast of 6.2% saying expansion in Brazil and India and to a lesser extent
Russia, South Africa and Turkey had slowed already.
States want to hike professional tax
In a Budget wish list presented to finance minister Pranab Mukherjee,
finance ministers of states on 18 Jan. 2012 demanded that the government should
allow them to tax top professionals more and
lift the ceiling from the current 2,500 a year.
Centre urged to give funds directly to States
Majority of States have favoured the Rangarajan Committee’s
recommendations on doing away with the current system of classification of
expenditure into Plan and Non-Plan categories on 18 Jan. 2012. They have also agreed that the BK Chaturvedi
Group report on Centrally sponsored schemes should be implemented. Mr. Sushil
Kumar Modi, Chairman of the empowered Committee of States’ Finance Ministers,
asked the Centre to give funds to the states directly for various social sector
schemes.
Small And Medium Units Urged
SMEs (small and medium enterprises ) in the country used to work more
closely with special economic zones to
gain from the facilities extended .
Banks Want Tax Compliance Norms
Banks have moved the finance ministry to ease the procedure relating to
the compliance being faced by depositors
to the senior citizen and economically weaker categories . saying that
pan in forms 15G/15H should not be mandatary .
Center Mulls Textiles Sops With Retrospective Effect
The Government is planning to give incentives to the textiles sectors which are burdened
with debts.No ,subsidy scheme was given
for these campanies in 2010 – 11 .Companies which were deprived for benifit
last year will be covered under the changed rule .
LIC Crosses One Million Mark
The Life Insurance Corporation of Indai has crossed the one million mark
in cumulative lives under its health Insurance segment.
LIC Launching Jeevan Ankur
Life Insurance Corparation of India
is launching a new plan . Lic ‘s Jeevan ankur on 23 ‘rd Jan 2012 to meet the educational and other needs of the child .
China To Rescue UK Economy
China’s fastest growing economic presence in Britan to rescue the UK
economy the china investment corporation (CIC)
has bought a 8,6% stake in Thames water,which is Britans’s largest water
and sewerege company .
The production target for worlds largest coal produce coal India ( C I
L) is likely to be fixed at 46.4 million
tones mt for the 2012-2013 financial year.
4 Pharma FDI Plans Okayed
For money inflow intact, the government has cleared forms foreign direct
investment proposals in pharmaceutical space , dispelling fears that the recent
change in rules will effectively kill foreign investments in the sector.The
foreign investment promotion board ( F I P B ) examines proposals that are in
approval route on merit .
Tata Power In Talks To Buy 15 % Stake in MEC Coal
The Tata group already owns 30 % in mines promoted by the Bakrie group
one of the Indonesia’s biggest house.Tata company plans to secure coal supplies from Indonesia
to reduce power generation costs .If the deal goes on it will be the second
time buying a stake in Indonesia coal mines .
R B I Cuts C R R Rates
The Reserve Bank of India on 24 th Jan 2012 cut the cash ratio by 50
basis points from 6% to 5.5 % with effect from 28 th Jan 2012 , which would
release Rs 32,000 crore in the financial
system . keeping all other unchanged repo rate at 8.50 % . GDP growth from 7.6%
to 7 % now .With the RBI holding back on cutting interest rates due to
increased inflation risk from global crude , oil prices, the lingering impact
of rupee depreciation .CRR cuts would
bring liquidity and help in sensex up .
India – Srilanka Bilateral Trade Surges by 70 %
Trade between India and Srilanka surged by more than 70 % in 2011over the
past years touching all time high of $ 5
billion .
Solar Powered A T M ‘s In Rural Areas
Innovation which makes a difference to people’s lives in the Indain
context is very different .The company
Vortex placed in Chennai helping the banks by solar powered A T M’s installed
in rural places .Where as conventional
ATM’s requires 50 watts of power everyday while Vortex’s machines
require just 70 watts power to work .
India Signs International Tax Treaty
The government had made another move to get information about black money
stashed away from the country .India had signed the multilateral convection on
mutual administrative assistance regarding tax matters , that promotes
international cooperation .India and other countries joined to ensure that
individuals and multinational enterpries pay right amount of tax ,at the right
place .Which is based on international standards of transparency and exchange
of information .
Samsung India To Exit From Window AC Market
India’s largest consumer durable firm Samsung India Electronics had
decided to exit from window air conditioners segment from the year 2012 .And
completely focusing on fast growing split air conditioners market ,due to the
window AC market is shrinking significantly .
TCS Opens New Facililty In Silicon Valley
The I T major ( T C S ) Tata Consultancy Services has opened a new
facility in U S , It will serve as the world wide headquaters of the company’s
mobility solution units .And which aims to bring the benifits of emerging
technologies such as big data , analyties and mobility to enterprises across
all industries .
CAG To Audit In States
The Comptroller and Auditor General of India (CAG) has decided to audit the spending
of all states under the National Rural Health Mission (N H R M ) Scheme .After hearing a Rs 5,754 , crore NRHM scam in Uttarpradesh . The CAG will conduct independent audits of the
scheme in 17 other states to ascertain
losses to exchequer . The ministry has
written letters to states, asking them to cooperate with their accounts
generals.
Excise Duty ,Service Tax May Be Hiked In The Upcoming Budget
To revive Indian economy ,impacted by the global slowdown , the
government had provided three fiscal stimulus packages starting from Dec 7,2008
the government had brought down excise duty from 14 % to 10 % to miligate the
impact of the global financial crises .The duty was further cut to 8 % on Feb
24, 2009 . On Feb 26 2010 rolled back the cut partially . The excise duty and
service tax may be hiked by 2% in the up coming budget . Government is thinking
that entire cut be rolled back . When industry
is down and demand is depressed , raising duties may further hurt growth .There
will be fiscal deficit likely to be
5.6 % to 5.1 % .in 2011-2012 .
Economic Growth Revised Down By 8.5% To 8.4 %
The central Statistics office on 31 st Jan 2012 lowered its estimate for the country’s gross domestic
product (GDP) growth in 2010-2011 to 8’4
% from 8.5 % earlier , The gross national income grew 7.9 % in 2010-2011 .GDP
growth in Agriculture sector is 7% .GDP growth in service sector grew up by
9.3 % . GDP growth in financial savings reduced from 12.9% to 10 % .GDP
growth in private cooperate sector down by 8.2 % to 7.9 % .GDP growth in saving
of public sectors increased from 0.2 % to 1.7 % .The gross demostic capital
formatiom at current prices increases from Rs. 23.64 lakh crore to 26.92 lakh
crore in 2010-2011.The rate of capital formation stood at 35.1 % in 2010-2011
low down than earlier against 36.6 % in 2009-2010 . These are the latest
revisions ,part of quick estimates of of nationalincome ,cunsumtion expenditure
,saving and capital information released by central statistics office .
RBI lowers Export Figures by $ 6 B, surprises Economists
The Reserve Bank of India ( RBI ) has revised its export numbers downwards by $6 billion in its balance of payments statement for the first
quarter ( April – June ) of the fiscal indicating massive over statement in the
country’s export numbers.
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